Investor Day 2012: Canada
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Investor Day 2012: Canada

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Investor Day 2012: Canada

Investor Day 2012: Canada

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    Investor Day 2012: Canada Investor Day 2012: Canada Presentation Transcript

    • FULL SUITE OPPORTUNITYVince TimpanoPresident and Chief Executive Officer, Canada
    • LEVERAGING A STRONG FOUNDATION TO ACTIVELYBUILD OUR FULL-SUITE OF PRODUCTS & SERVICES LOYALTY Canada Overview (FY 2011) COALITION PROPRIETARY ANALYTICS LOYALTY LOYALTY Total Gross Billings $1.3B Collects, analyzes Manages Canada’s Designs, builds and and derives actionable flagship premium manages customer and multi-partner insight from customer employee AEBITDA $373M data to deliver loyalty program loyalty programs for measurable marketing individual clients ROI for our Margin1 29% clients and partners Employees 1,895 Intelligent Shopper Solutions • 4.6M members • 1 grocery anchor client • >65 clients • >75 partners,150 brands • 23 programs • 5,000 retail locations • > 14M members • 1.5M travel redemptions • 10 CPGs signed 1 AEBITDA / Total Gross Billings
    • DELIVERING SUSTAINED HEALTHYFINANCIAL PERFORMANCE Gross Billings (Millions) +11% 1,249 1,299 1,047 2009 2010 2011 Consistent delivery of leveraged growth Gross Margin1 (Millions) +20% Healthy and growing margins 604 419 498 Driving productivity to enable investment Important contributor to Aimia globally 2009 2010 2011 AEBITDA (Millions) +16% 338 373 277 2009 2010 2011 Proprietary Loyalty 1 Before depreciation and amortization Aeroplan
    • A STRONG HISTORY OF IMPORTANT INDUSTRY ANDCOMMUNITY RECOGNITION AND SUPPORT Employees Commercial Community Best Airline Credit Card (2009,2010,2011,2012) Airline Program of the Year (2010, 2011) Best Airline Promotion for Earning (2010, 2011) Best Airline Redemption Ability (2010, 2011) Best Customer Service (2011) 4 years running
    • BUILDING ON RECENT ACCOMPLISHMENTS ANDCONTINUING TO INVEST FOR FUTURE GROWTH 2010 2011 2012 New Aeroplan brand launch Enhanced Flight Search Tool Significant savings in Proprietary Rewards Platforms supported by 25% increase in productivity marketing Air redemption volumes up 12% Investments in new ventures Launch of Destination Miles Digital enhancements Distinctive Capabilities • Innovation • Business Intelligence • Data & Analytics
    • WHILE LOYALTY IS WELL DEVELOPED IN CANADA,SIGNIFICANT POTENTIAL FOR GROWTH REMAINS Market Characteristics Growth Potential ($Billions) World’s most sophisticated and developed Loyalty currently capturing only 50% of total household expenditures loyalty market Current Consumers Aimia Market - 9 / 10 Canadians belong to at least Penetration Opportunity 1 loyalty program 1.3 3.0 1.3 - 6.5 programs per household$6B - Over 90 million loyalty program memberships 1.8 1.8 3.0 Business - Domestic and global loyalty services leaders Other - Emerging and new payment technologies / players Significant further growth available in Canadian Market • Deeper loyalty penetration of consumer spending • Evolution of loyalty value chain brings new opportunitySource: PMB, Aimia proprietary research
    • WE SEE SIGNIFICANT ROOM TO GROW BEYONDOUR CURRENT FOOTPRINT Sources of Growth Addressable loyalty market size by 2015 ($ Millions) 800 Deeper Penetration of existing $3B 650 clients / partners 600 New clients in already active 400 sectors / verticals 300 250 Underpenetrated and / or new sectors Financial Grocery and Retail CPG Telco and Other Institutions Pharmacy Media
    • THE TRADITIONAL LOYALTY VALUE CHAIN ISBEING TRANSFORMED, CREATING OPPORTUNITIES WHAT I BUYEVERYCONSUMERACTION SEARCH REVIEW MOBILE DEVICECREATES DATA & PAYMENTSALWAYS ‘ON’ ’ QUOTE RECOMMEND SOCIALCONSUMERS NETWORKS What I think What I’m interested in What I read Who I talk to What I’ll do next Where I am What I watch What I do What I aspire to
    • WE ARE UNIQUELY POSITIONED TOTAKE ADVANTAGE OF THESE NEW OPPORTUNITIES Customer Loyalty Needs Our expanding portfolio of businesses covers are becoming more sophisticated the entire loyalty spectrum Basic Deliver customer value to fuel increased sales COALITION LOYALTY Optimize contribution of core customer segments, with focus on key profitability drivers Complex PROPRIETARY LOYALTY Optimize marketing ROI, and commercialize LOYALTY ANALYTICS loyalty investment Intelligent Shopper Solutions
    • LOOKING FORWARD: OUR VISION AND OBJECTIVES Vision Objectives 1 Strengthen and grow our core 2 Accelerate the development of our full suite Canadas recognized 3 Build a world class operating system leader in loyalty 4 Drive Aimia brand awareness and reputation Create an inspiring and highly engaged work environment 5 (best people, best culture)
    • A FEW ADDITIONAL THOUGHTS COMPETITION KEY 2013 MILEAGE TRIBUNAL PARTNER EXPIRY RULING RENEWALS
    • STRENGTHEN ANDGROW OUR COREKevin O’BrienChief Commercial Officer, Aeroplan
    • 1 Strengthen and grow our coreAEROPLAN:CANADA’S FLAGSHIP PREMIUM COALITION Canada’s Most Affluent Unique and Flexible set of Partnership Models Member Base 4.6M EXCLUSIVE Actives Leveraging the power of our brand and member base on behalf of our partners… CO-EXISTENCE CONVERSION …with our members as our partners’ best customers PROMOTIONAL 34M Canadians & OTHER
    • 1 Strengthen and grow our coreREADY TO EMBARK ON THE NEXT ERA OF LEADERSHIP Travel + FinancialTravel – World Class FFP Travel + Financial + Retail Looking Forward • Added more than 60 travel partners • Expanded the financial • Extend partner relationships• Air Canada’s Frequent Flyer • Canada’s first mass market, offering with American travel-rewards financial card – grounded in data and value Program Express CIBC Aerogold Visa • Innovate to address evolving • Established a foundation in competitive landscape and everyday retail consumer expectations • Address key program priorities: - Burn : Earn - Renewals of key partners - Competition tribunal ruling 1990’s 1984 2004 +
    • 1 Strengthen and grow our coreUNIQUELY POSITIONNED FORPREMIUM MARKET OWNERSHIP A position of strength Based on, and building from, six value levers • $1.1B1 and growing top-line Strong Premium Loyalty Brand • Strong bottom line delivering Most Attractive Premium leveraged growth Membership Consumer Data Base Asset & Insight • Supporting core partner Industry Leading Powerful Partner market leadership Travel Rewards Network World Class Marketing Capabilities1 FY 2011
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & BaseOUR MEMBERSHIP BASE IS THE MOST Insight Industry Powerful Leading Travel Partner Rewards NetworkAFFLUENT IN CANADA, AND STILL GROWING World Class Marketing Capabilities Premium Consumers Passionate and Engaged Driving Spend and Profit 1.5 88% of our most premium cardholders prefer to collect Aeroplan miles over any other program’s currency 30% 85% of our most premium cardholders collect more miles with Aeroplan than in any other program 81% of our most premium cardholders 50% 1.0 engage with Aeroplan communications at least once a month 70% Canadian Aeroplan PopulationSource: Aimia proprietary research
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & BaseLEVERAGING DEEP INSIGHT INTO PREMIUM Insight Industry Powerful Leading Travel Partner Rewards NetworkCANADIAN CONSUMERS World Class Marketing Capabilities Premium Canadian consumers are Competitive landscape is Next Generation Aeroplanmotivated by seven drivers of satisfaction intense and reframed customer expectations Availability • Build on the outstanding value of our Flexibility travel rewards product Simplicity / Certainty Value • Deliver an unparalleled member experience, with a focus on next Simplicity generation loyalty and the member journey Exclusivity/ VIP privileges • Build out the premium coalition to Engagement Value provide additional relevant accumulation opportunities Customization
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & BaseWE CONTINUE TO INNOVATE THE MEMBER Insight Industry Powerful Leading Travel Partner Rewards NetworkEXPERIENCE: DESTINATION MILES World Class Marketing CapabilitiesA valuable and compelling offer• One stop shop simplicity to complement air rewards redemptions• Unrivalled accumulation opportunity for leisure travel bookings• Multiple touch-point opportunities to drive member engagement• Extends our data asset on premium Canadian consumers• Broadens the trusted advisor / travel service provided by Aeroplan• Leverages multiple direct channels to drive new sources of revenue by addressing member needs
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & BaseOUR AIR TRAVEL REWARDS VALUE Insight Industry Powerful Leading Travel Partner Rewards NetworkIS UNPARALLED World Class Marketing Capabilities RBC TD Plat BMO RBC Cap One Amex Aeroplan Avion Travel World Elite WestJet World Elite Gold • Industry leadership in rewards value; unrivalled in business class Classic Flight Rewards Executive Classic Flight Rewards Economy • Classic Flight Rewards guarantee 8% of Air 6.6¢ 2.1 ¢ = at maximum ticket price Canada capacity on every route 1.4 ¢ = based on average fare • Star Alliance provides access to 1,356 airports through 27 member airlines globally 2.1¢ • 1.5 M Air redemptions in 2011 (+8% YOY), 2.2¢ 1.4¢ 1.9¢ 2.0¢ 1.5¢ 1.5¢ more than any other loyalty program in Canada 1.0¢ 1.0¢ We have performed our own study using a proxy for Canadian travelers and taking into account fuel & other surcharges, with similar resultsSource: Credit Suisse: Aeroplan Analysis
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & BaseWE CONTINUE TO BUILD UPON OUTSTANDING Insight Industry Powerful Leading Travel Partner Rewards NetworkVALUE OF OUR TRAVEL REWARDS PRODUCT World Class Marketing Capabilities Enhanced Flight Shopping Tool Last Minute Travel Next Area of Focus Address member appetite for certainty to complement our industry leading value 506K Star Alliance redemptions in 2011 186K Last Minute Travel redemptions in 2012 • +42% YOY growth
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & BaseWELCOME TO THE CLUB BRAND RESONATING Insight Industry Powerful Leading Travel Partner Rewards NetworkWITH PREMIUM CANADIAN CONSUMERS World Class Marketing Capabilities
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & Base DELIVERING PARTNER VALUE: Insight Industry Powerful Leading Travel Partner Rewards Network ROI THROUGH DATA AND ANALYTICS World Class Marketing Capabilities Drive enhanced value delivery to move relationships along the Strategic Partnership Spectrum Strategically Integrated and Inter- High Dependent Corporate StrategyPartnerrelationship & Customerstrategiccollaboration Strategy Loyalty Strategy Targeting Life Cycle ROI Low Transactional Low High Data sharing & interdependency
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & Base InsightDELIVERING PARTNER VALUE: Industry Leading Travel Rewards World Class Powerful Partner NetworkDIRECT ENERGY CASE STUDY Marketing Capabilities Global Aimia relationships and Deep customer insight to Supports Direct Energy’s best practices surgically target most receptive Customer Strategy and drives customer segments profitability FROM TO Acquisition Acquisition Up-sell Up-sell Retention Retention Cost-to-serve Cost-to-serve
    • 1 Strengthen and grow our core Strong Premium Loyalty Brand Premium Most Attractive Consumer Membership Data Asset & Base Insight Industry Powerful Leading Travel Partner Rewards NetworkEXTENDING OUR PREMIUM COALITION World Class Marketing Capabilities Expanded, Multi-Year This imag e cann ot Relationships Core Renewals New Partners: Retail New Partners: Manufacturers
    • ACCELERATE DEVELOPMENTOF OUR FULL SUITEMichael O’SullivanPresident, Proprietary Loyalty, Canada
    • 2 Accelerate development of our full suiteNEW LOYALTY REALITIES:CONSUMER PURCHASE BEHAVIOUR HAS CHANGED Skim Infinite Whole Multiple Product Organic Channels Options Glass Bottles App Chocolate Soy Mobile Local All Independent Evaluated Concurrently International News Discount Online Grocery/ ‘c’ stores Infinite Online Bloggers App Influencers & Triggers Personal Direct social Mail networks
    • 2 Accelerate development of our full suitePROPRIETARY LOYALTY:HELPING CLIENTS DRIVE ENGAGEMENT Consumers Employees Channels 700+ employees Working for 17 anchor clients, Supporting 23 programs, Consumer Loyalty Employee Sales Incentives & Serving over 14M members, Programs Recognition Rewards Generating $171M in Gross Billings Enhancement Services
    • 2 Accelerate development of our full suiteEXAMPLES: CONSUMER LOYALTY &EMPLOYEE ENGAGEMENT PROGRAMS BMO World Elite MasterCard Program BMO Bravo Employee Reward and Recognition program End to end Consumer Loyalty Services - Analytics, Customer Employee Engagement program support -design, web/IT service, Web & IT Platforms and Rewards fulfillment (travel, platform, communications, rewards fulfillment merchandise and gift cards)
    • 2 Accelerate development of our full suiteSIGNIFICANT GROWTH AVAILABLE BEYOND OUR COREFINANCIAL INSTITUTIONS VERTICAL Addressable Proprietary Loyalty Market by Vertical – 2015 ($ Millions) 450 $1.2B 350 180 100 90Significant opportunity in the market in coreverticals – Financial Institutions, Retail &Consumer Packaged Goods Financial Retail Travel and CPG Telco & Media Institutions Hospitality Addressable Proprietary Loyalty Market Service – 2015Analytics, Strategy, Customer Experience & ($ Millions)Digital are focus areas 300 225 175 150 150 100 60 IT Media & Analytics Contact Strategy Customer Creative Messaging Center Experience
    • 2 Accelerate development of our full suitePOSITIONING FOR SUSTAINED PROFITABLE GROWTH Objectives Priorities 5 1 Strengthen Leadership in Core Financial SUPPORT BUILD OUT Institutions Vertical FULL AIMIA MARKET PROPRIETARY LEADERSHIP OFFERING Diversify Revenue Across New Verticals 4 2 INVEST IN MARKET ENHANCEMENT LEADING Drive Growth Through Bringing Next SERVICES REWARDS Generation Loyalty Products To Market PLATFORMS 3 EXPAND TO Leverage Unique Capabilities For Aimia’s NEW International Markets VERTICALS
    • SUPPORT BUILD OUT2 Accelerate development of our full suite AIMIA MARKET FULL PROPRIETAR LEADERSHIP Y OFFERING INVEST IN MARKET ENHANCEMENT LEADING SERVICES REWARDSBUILD OUT FULL LOYALTY OFFERING PLATFORMS EXPAND TO NEW VERTICALS LOYALTY Loyalty Digital CustomerLOYALTY STRATEGY Strategy Loyalty Experience BlueprintSTRAEGY LOYALTY LOYALTY Liability Modeling &ANALYTICS ANALYTICS Management Engagement Reward & Partner Social Revenue LOYALTY Management Loyalty (Cardlytics, DailyOPERATIONS Deals, Affinity Malls)
    • SUPPORT BUILD OUT2 Accelerate development of our full suite AIMIA MARKET FULL PROPRIETAR LEADERSHIP Y OFFERINGBUILD OUT FULL LOYALTY OFFERING – INVEST IN ENHANCEMENT SERVICES MARKET LEADING REWARDS PLATFORMSDATA DRIVEN LOYALTY STRATEGY EXPAND TO NEW VERTICALSLeveraging Aimia’s Loyalty expertise, we are building anew business to drive data driven Loyalty Strategy Every step of the Emerging purchase business models journey Digital C-suite Customer Loyalty Data Strategy Customer Experience Social +200
    • SUPPORT BUILD OUT2 Accelerate development of our full suite AIMIA MARKET FULL PROPRIETAR LEADERSHIP Y OFFERING INVEST IN MARKET ENHANCEMENT LEADING SERVICES REWARDS PLATFORMSMARKET LEADING REWARDS PLATFORMS EXPAND TO NEW VERTICALSInvest to strengthen leadership in TravelMerchandise and gift card rewards business • Rewards platforms updates – heavy investments paying off • New features showing 10+% increase in conversion • 3 year roadmap will drive core rewards fulfillment growth • Heavy emphasis on digital
    • SUPPORT BUILD OUT2 Accelerate development of our full suite AIMIA MARKET FULL PROPRIETAR LEADERSHIP Y OFFERINGEXPAND TO NEW VERTICALS – INVEST IN ENHANCEMENT SERVICES MARKET LEADING REWARDS PLATFORMSHUSKY ENERGY CASE STUDY EXPAND TO NEW VERTICALS Husky’s Strategic Aimia’s end to end Early Results Loyalty Needs value proposition • Deeper relationships and brand 11,000 Registered Members differentiation per week • Compelling relevant proposition, across all audiences • Seamless cross-channel experience 77% Greater Fuel Volumes • Ongoing strategic loyalty support Monetize Deliver • Program strategy & design 15% Greater Ancillary Sales • Loyalty analytics • Program liability management Measure • Multi channel communications 4.2 transactions per month Optimize & Analyze • Rewards fulfilment 35
    • SUPPORT BUILD OUT2 Accelerate development of our full suite AIMIA MARKET FULL PROPRIETAR LEADERSHIP Y OFFERING INVEST IN MARKET ENHANCEMENT LEADING SERVICES REWARDS PLATFORMSINVEST IN ENHANCEMENT SERVICES EXPAND TO NEW VERTICALSStrengthen leadership position in Canadathrough continued product innovationExport ES to Aimia’s coalition programsaround the globeExport credit card model to new growth /developing markets: • Adopting an incubator approach to enter selected countries in APAC where Aimia has a footprint • LOI signed with Thanachart Bank, Thailand to launch 3 Enhancement Services products
    • SUPPORT BUILD OUT2 Accelerate development of our full suite AIMIA MARKET FULL PROPRIETAR LEADERSHIP Y OFFERING INVEST IN MARKET ENHANCEMENT LEADING SERVICES REWARDS PLATFORMSSUPPORT AIMIA MARKET LEADERSHIP EXPAND TO NEW VERTICALSSupporting Aimia’s market leadership in Canada • Driven several millions in synergies over past 12 months • Non Air rewards procurement • Launch of Destination miles • New e-catalogue in 2012 – cash + points, tickets, e- vouchers, m-certs • Aeroplan Enhancement services trial
    • 3 Build a world class operating systemBUILD A WORLD CLASS OPERATING SYSTEM Innovation Product Development Grassroots Aimia Process & Culture LOYALTY STRAEGY LOYALTY LOYALTY LOYALTY LOYALTY ANALYTICS STRATEGY ANALYTICS OPERATIONS Productivity Skills / Capabilities • Regional shared services model • Data and analytics • Next wave of synergies e.g. • Strategy & account management processes and systems • Business intelligence
    • OneMAXIMISING THE ‘FULL SUITE’ Successful TeamOPPORTUNITY IN CANADAWhere we started Where we are today Where we are going New Models COALITION New LOYALTY ventures COALITION LOYALTY PROPRIETARY LOYALTY ANALYTICS LOYALTY PROPRIETARY LOYALTY LOYALTY ANALYTICS IntelligentShopper Solutions IntelligentShopper Solutions
    • THANK YOU